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Guide
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MarketingMix Contents
I 0 2 I Ed’s note I 1 3 I Expert opinion: Nici Stathacopoulos
Nici wonders if anyone knows what direct marketing is
I 0 3 I Media mix beyond 2010 Radio: anymore.
Graham Wilcox
I 1 5 I The future of TV
I 0 4 I Media mix beyond 2010 TV: Marketing Mix chats to The MediaShop’s Virginia Hollis
Peter McKenzie
about the future of TV.
I 4 8 I King III
I 1 2 I Expert opinion: Richard Duncan The latest King III report takes a much closer look at the
Richard compares apples with apples. communications industry – you have been warned!
06 11 24 32
PROPRIETOR AND PUBLISHER: Systems Publishers (Pty) Ltd. Tel: (011) 234 7008 North Block, Bradenham Database:
Hall, Mellis Road, Rivonia, Johannesburg PUBLISHER: Terry Murphy MANAGING EDITOR: Michelle Sturman List Perfect
michelles@systems.co.za EDITOR: Fulvia Becatti fulviab@systems.co.za ADVERTISING MANAGER: Hellen Murahwa
hellenm@systems.co.za PRODUCTION: Spencer van Graan spencerg@systems.co.za EVENT ENQUIRIES: Daisy
Cover picture: courtesy Soccer Laduma Mulenga daisym@systems.co.za SUBSCRIPTION ENQUIRIES: Marianne Nzioki mariannen@systems.co.za
www.marketingmix.co.za 3 292
(Jan-June 09)
Atoms by bytes –
anarchy beyond 2010
By Graham Willcock, managing director, RadMark
Beyond magazines
By Jonathan Harris, publisher, Thought24
MM: What role is digital media playing in marketing and MB: Brands should not merely be focused on ‘traditional’ online
advertising? Where does it fit in? advertising as a model to reach consumers when they approach the
MB: Digital media is one of the many ways to reach consumers’ Net. They need a holistic view which may encompass social media
hearts, minds and pockets. It’s particularly effective at targeting campaigns, viral e-mail campaigns, content creation, SEO and even
professional individuals and is highly engaging and measurable as Web development/site creation. These are all ways to ensure your
an interactive medium. brand gets out there and is noticed.
MM: Digital media is said to be a growing industry locally: MM: Social media is a hot topic – your thoughts on whether it
where do you think most of the growth will come from? has real value as a marketing/advertising tool?
Where should marketers/advertisers be investing to see the best MB: Social media hold tremendous value for brands. Like in any
long-term returns? early industry, there’s quite a bit of snake oil around. Marketers
MB: It’s become somewhat of a cliche to talk about the tremendous should be wary of the hype and stick to their core values and
promise and potential of the mobile Web, but this really is the principles when approaching social media campaigns.
mass digital medium of the future. The advertising model here is On a social media platform, be authentic, personable and add real
still crude and needs to evolve. Some mobile sites are reaching big value. People don’t want to interact with banks on Facebook and
audiences – it’s just a matter of time. Twitter, they want to speak to people at those banks – find a way to
do this.
MM: How will an event like the 2010 FIFA World Cup impact
on the digital landscape in SA? What can we expect? How will MM: What about digital media and innovation – what’s the link?
pricing, audiences, etc be impacted? And how can brands tap into this?
MB: FIFA is a demanding organisation that tolerates nothing but MB: By its nature, digital media is evolving fast. If you don’t
the best. It’s already implemented innovations such as wireless innovate, the bus will pass you by on the information highway.
broadband at stadiums.
MM: What is the digital media landscape going to look like in the
MM: Are there any recent developments in the digital media next 12 months? Who is going to be online, and how? What will
world that you think are going to have a positive impact for happen to brands that are not digital savvy?
marketers/advertisers? MB: I’d rather look at a five-year period. Five years ago the industry
MB: The unrelenting march of the mobile platform. was practically unrecognisable from what it is now with blogging,
Facebook, Twitter, You Tube. In five years’ time I doubt it will be
MM: Which are the top five digital platforms or tools, that you the same too. I suspect brands that are not digital savvy will find
think local brands need to start familiarising themselves with their medium-term positions eroded. It all depends on the brand’s
(if they have not already done so)? target market and what its competitors are doing in this space.
Commuter media:
ever changing
By Kevin Kirby, chief operating officer, ComutaNet
Comparing apples
with apples
Can one bad apple ruin an entire shipment? Some
would say not, but I would beg to differ.
he growth of Apple has been more persisted. The plain truth is that it isn’t right to
Direct marketing
oodness, what a very boring title There is less unwanted mail in consumers’
Useful c ontacts
Sponsor Contact: Daisy Mulenga, daisym@systems.co.za / 011 234 7008
Delegate Contact: Marianne Nzioki, mariannen@systems.co.za / 011 234 7008
Speaker proposals: Terry Murphy, terrym@systems.co.za / 011 234 7008
15
The future of TV
Marketing Mix chats to Virginia Hollis, joint managing director, Sandton, The MediaShop, about
the local TV industry.
Marketing Mix: What will the local film and TV industry look like MMX: Repeat content is an irritant – do you think this will change
in 2010 and beyond? anytime soon?
Virginia Hollis: It’s difficult to predict what will happen to the VH: There will always be repeats or reruns. Viewers do not
local film and TV industry, but I would like to believe that local understand that when stations buy international content, especially
producers will find ways of releasing cheaper content because the movies, they buy the right to an initial broadcast in prime time and
stations are going to need a lot of material. If you look at countries then subsequent broadcasts off peak.
such as Nigeria (Nollywood) and India (Bollywood), while they Also stations buy one blockbuster and with that come a package
each produce expensive extravaganzas, they also produce volumes of of other titles. This is the only way that advertising during films
cheaper, entertaining shows. remains affordable. I think we also forget that as we’ve already seen
a series or movie, it doesn’t mean that everyone has; this is
MMX: Reality programmes are big with viewers; will this trend particularly true of M-Net and DStv viewers. We tend to forget that
continue? most households don’t have access to M-Net or DStv. Therefore
VH: Reality changes all the time. The icons – Survivor, Amazing repeating local content is something stations have to do to amortise
Race, Idols, SA’s Got Talent – are never going to go away as they are the costs. It is terribly expensive to produce local content and
serious talent shows. invariably stations cannot get their money back from just one
Shows such as Big Brother and the Biggest Loser will lose viewer broadcast; a repeat helps bring in additional revenue to cover the
interest after a while. As a genre, reality shows are here to stay but cost of production.
only the iconic ones will keep going. Therefore producers will need It is also extremely difficult to fill a 24-hour schedule. If we look
to come up with sillier ideas; I think we’ve only touched the tip of at the five major broadcasters (SABC 1,2,3, M-Net and e.tv)
the iceberg when it comes to ‘silly’ concepts! between them they have to fill 120 hours of programming a day or
nce the final draws for the FIFA 2010 World Cup have
during the World Cup period, as Dr Dean explains: “An advertising attorneys,” says Dr Dean. The hotel industry is able to take
campaign referring to football in general terms does not constitute advantage of the shortfall of rooms required for the event.
an unauthorised association, unless it makes use of FIFA and World Accommodation providers can market their services freely to
Cup trade mark symbols.” visitors to the country during the World Cup, “But they must not
Kulula is not an official sponsor of the World Cup and has relate their marketing efforts to the World Cup. They can rather
launched a R12-million multi-platform advertising campaign for capitalise on the demand for accommodation at the time, to
print, TV and radio. The airline company initiated the campaign in provide accommodation facilities in South Africa in general,” says
2009 for the duration of the Confederations Cup but the campaign Dr Dean.
was not in contravention of the law. It showed the South African He also says that in due course fan parks will be organised and
colours taking to the skies with the radomes (nose cones) of the there may be some facility for non-official FIFA affiliates to
entire fleet resembling soccer balls. participate.
Garments with general football terms and images, or terms and According to the CEO of VWV, Abey Mokgatswane: “There is
imagery relating to South Africa, without an associated allusion to still opportunity for those who are imaginative enough to promote
the World Cup do not create an unauthorised association. In-store themselves and their products, while at the same time being
decoration with general football-related terms or symbols or terms cautious not to infringe legislation.”
or symbols related to South Africa, without any reference to the “For example start an inter-company soccer league, have branded
2010 FIFA World Cup, is not prohibited. football competitions or host large-scale events such as family fun
days and fan fests where staff, suppliers and other stakeholders are
invited to watch the game. These can all be branded under an
umbrella of clever opportunistic marketing, while not ignoring that
such events can boost relationship building and networking
opportunities,” says Mokgatswane.
Measuring effectiveness of
sports sponsorship
By Neil Jankelowitz, joint managing director, MSC Sport
T 2010 FIFA World Cup is only a few months away. The bad
news is that all traditional advertising platforms have been
booked. Outdoor, print, TV media have all been sold out for the
June and July 2010 period.
However a platform with the most eyeball power and the one
with the most measurability is still available.
It is estimated that there are about 416 million mobile users on
the African continent with South Africa contributing 37 million of
these. This creates a platform for cellphone to be used as a ‘remote
control’ to turn these customers onto your brand.
Football fans tend to support a number of teams, one in the
South African PSL, one in the English Premier League or in another
major league in the world.
football experience.
For the mobile Internet, advertisers can seek packages to link
banner or text ad campaigns to a live match commentary across the
entire service or choose a particular team or a league/competition
for the brand to be associated with (depending on the target
market). For example, an advertiser may take up a Kaizer Chiefs
For someone who is passionate about football, it is vital to get package and run a campaign to focus on the live match commentary
information about a preferred team as it happens, and this is where and news for that particular club, therefore targeting the direct fans
mobile marketing steps up to the mark. of a particular club.
A goal alert SMS delivered to a football fan within 15 seconds of A ‘push’ example is the delivery of live match SMS updates to
the actual goal being scored offers greater value than hearing about the fan. The branding and sponsorship of live match SMS updates
it during the news bulletin an hour later. A multimedia match report is a powerful way for advertisers to reach the target market
delivered via MMS to a fan immediately after the match providing a and solicit measurable cost per click or call to action traffic for
full analysis of the match and access to an archive of video highlight their campaigns.
packages can further enhance the user experience of football on the Similarly MMS match reports and videos can be ‘pushed’ to the
cellphone. A sponsor based multichannel delivery of football recipient and used as an advertising channel to drive branding and
information and content is a powerful tool for advertisers to reach call to action campaigns. Because recipients opt into receiving these
this market while offering real value. updates, the advertising can be packaged in a way that it is seen to
With major sponsorship avenues such as league/cup competitions be adding value to the user. Therefore instead of being intrusive it
and club sponsorships already tied up, mobile opens up new becomes part of their personal football experience.
opportunities for brands that are not currently official sponsors of It is crucial for any advertiser or sponsor looking to reach this
the game, to become brand players in the industry. market to carefully consider implementing a strategy that will link a
An advertising campaign strategy across the ‘push’ delivery campaign to all the elements of the mobile football experience. The
methods (SMS and MMS) and ‘pull’ delivery methods (mobile mobile opportunities above present a way for brands that are not in
Internet and Java based applications) guarantee a successful direct football sponsorship to get into the football market in an
campaign for a sponsor and ensure that a brand is exposed to fans innovative way and gain brand affinity in the industry through the
during a mobile football experience. open market route that mobile presents.
MMX: How should media planning and segmentation be the experience, and those that will avoid it at all costs. Who do you
done during the 2010 craze for the best results? want to talk to?
GD: As per the above, media planners should be focusing on their MMX: Out-of-home TV viewing is huge. What is the
clients’ target market. If some titles experience a slight increase in impact of this on advertising and marketing?
circulation because of the ‘tourists’, that could be seen as a bonus
but it’s really only relevant if they represent the core target market GD: The World Cup is a social event – people are drawn to
for the client. In Germany in 2006, the official products produced crowds, they want to sample the atmosphere even if it is in a packed
in English did a lot better than those in German simply because local pub. Sadly, the World Cup is not just about Brazil, England,
there were more people who could speak English either as a first or Spain and Holland. I doubt the majority of South African fans will
second language. I have argued in various discussions that the stay up to watch matches like North Korea versus Honduras or
World Cup tournament is not really a circulation driver because Chile versus Slovakia. Not every group match will be a ‘must see’
there is such saturated content all over the place. If anything, for a lot of people, but games featuring the big names in world
publishers will do well to maintain their circulation over this time. football will be massive. The England and Spain games will get a lot
I have been involved in enough ‘2010’ discussions across the of television audience as will Bafana Bafana matches – seriously! The
various Media24 commercial teams to know that there are plenty opening match of the World Cup will break whatever the current
of great ideas and media solutions available for media planners TV audience rating is!
out there – they just need to engage with their media reps and do
their homework. Do you think print will see increased circulations, as
tourists pick up mags and newspapers?
is a circulation opportunity.”
MMX: How will the mags and newspapers in your stable
maximise on the soccer fever?
GD: Without giving away any secrets, various titles and business
units within our group will do a range of exciting special issues and
The best advice I can give to anyone out there who wants to supplements but right now nobody wants to publish something that
reach an audience during the event is to consider the ‘environment’ doesn’t add value for our readers or make financial sense. We are
and the conditions of the World Cup tournament. still analysing various options and projects and these will be
It’s winter. That means different things to people in Durban and available to the market early next year.
people in Cape Town. Being outdoors in Cape Town is not great The World Cup tournament is not a ‘final destination’ for
when the rain is pouring and it’s dark by 4.30 pm! Media24, if anything it provides a launch pad for additional projects
It’s only one month long – the majority of fans will only be here and initiatives that will seek to take advantage of any positive
for the first two weeks. What would an average day’s activities be momentum the event generates. We are not interested in making a
for a group of five foreign men? quick buck out of the tournament, but we recognise that the
There is no school. There will be thousands of moms trying to tournament provides us with a catalyst that hopefully stimulates
deal with their children who want to go into the cities to additional business beyond the final whistle.
Within the Media24 group, SupaStrikas has got some great ideas
experience the ‘World Cup’. How will they consume media?
There will be traffic congestion in the host cities on match days.
and opportunities as does Sport24 in the online space. Family
Most of the international visitors will be men. They want to
Magazines has really embraced the World Cup and will be doing
some clever things in the new year and community newspapers are
drink beer and watch as many of the games as possible,
busy finalising some great projects. There is some suggestion that
preferably in a social environment.
we are all behind schedule or running out of time, but the reality is
South Africans will form three groups – those who will embrace
that no major sports event has ever managed to sustain a high level
the World Cup and want to be a part of the action wherever they of interest and support for more than 10 weeks prior to the start of
can, those who are curious and might come out to have a look at the event. I believe that the 2010 World Cup frenzy will start from
what all the fuss is about and maybe attend a fan zone just for somewhere around 1April 2010 – no jokes!
Untapped market
he South African football media consumer is incredibly
>> p28
There are other options available for mobile marketing. A most important sporting events in the world,” says Khanyi Dhlomo,
campaign targeting any team in the PSL or any other league can be MD of Ndalo Media.
run focusing on the club’s live match commentary and news, for
example. “Users opt-in to receiving messages in the form of Online
updates etc, and advertising can be packaged in a way that it is seen www.soccerladuma.co.za (the official website of Soccer-Laduma)
to be adding value to the user instead of being intrusive. In fact, the www.kaizerchiefs.co.za (official website for Kaizer Chiefs)
advertising becomes part of a user’s personal football experience,” www.soccerlife.co.za (official website for SoccerLife)
says Patrick Kawuna, co-founder of Livemobile.
Hollander finds it hard to believe that there was a time when Mobisites
Soccer-Laduma operated as just a newspaper. “Our website and www.soccerweek.mobi (official mobisite for SoccerWeek)
mobisite attracted 230 000 unique visitors in September 2009 alone. soccerladuma.mobi (official mobisite for SoccerLaduma)
Everything we do for the World Cup will include new media www.soccerlife.mobi (official mobisite for SoccerLife)
alongside print. It would be crazy not to,” she says. “It’s hard to
ascertain exactly how many visitors come to our website each TV
month because many users share a computer (Internet cafes, SABC 33
universities, libraries, work, etc) and the computer is counted as the SABC1 – Laduma – Build Up; Laduma – ABSA Premiership;
user. There is no official information on demographics but we Countdown 2010; Soccer 411; FNB African Soccer Show; YO.TV
assume that they are predominantly male in the 16-35 age group, Vuvuzela; Coca-Cola Soccer Zone
mainly students or employed, and heavily weighted in the LSM 5-10 SABC2: Know Your Game; Sport on 2 (will include soccer)
group,” Hollander adds. SABC3: Sport on 3 (will include soccer); English Premier League
Using social media and networks allows for greater interaction e.tv: Playa – 2010 Soccer Show; e-Shibobo
with its readers and audience is high on the list for Soccer-Laduma. SuperSport: SuperSport 3 and 4 are dedicated channels.
The weekly is looking to elevate the status of contributors by www.supersport.co.za/football
giving them official blogs/podcasts as well as introducing SuperSport 3 includes programmes such as 2010 World Cup
Soccer-Laduma TV, where users can upload their video clips. Magazine; La Liga; Goalissimo; UEFA Champions League; FIFA
“Express Yourself on our Web and a mobisite allows citizen Futbol Mundial; FA Premier League; Inter Milan TV; Juventus TV;
journalists to send in everything from opinions to match reports. Woza 2010; Soccer Africa; Coca-Cola Championship; AC Milan Weekly;
We will be able to target the exact groups age/sex/LSMs that The World Football Show; Futbol De Primera; Real Madrid TV.
brands would like to speak to as we learn more about our online SuperSport 4 includes programmes such as SuperDiski: Premier
community,” says Kwele. Soccer League; Woza 2010; PSL TV; ABSA Premierships Kings; The
Matsatsantsa Show; Engen Premier Soccer; Soccer Africa; Kaizer
Taxi rank TV Chiefs TV.
SABC works with ComutaNet to screen its content to commuters
using public transport via RANK TV. “We will be interested to see Radio
if the RANK TV sites can become public viewing areas. In those Metro FM (Discovery Sports Centre with Robert Marawa)
ranks that fall outside of the 1km stadium radius, we will most RAMS October 2009 listeners past seven days: 5.255 million
certainly allow informal traders and small businesses to get
involved,” says Kwele. Radio 2000 is the official 2010 FIFA World Cup station.
RAMS October 2009 listeners past seven days: 721 0000
Reaching for the teens
Aiming to capture the market that influences most buying SAfm – Gameplan; SAfm Sports Special
decisions in households, Ndalo Media launched SportsTeen, a RAMS October 2009 listeners past seven days: 648 000
monthly sports magazine aimed at sports crazed teen boys.
“We are a monthly magazine aimed at sports fans, with a strong Ukhozi FM – 2010 Ses’fikile
focus on soccer, and so are already well positioned to tap into RAMS October 2009 listeners past seven days: 5.954 million
the potential of 2010. While TV will certainly get its share of
the ad spend, print will remain a priority. It provides the Trufm Grandstands
opportunity for lasting imagery and a keepsake of one of the RAMS October 2009 listeners past seven days: 350 000 listeners.
Resources
FIFA
www.fifa.com/worldcup
For the marketing rules and regulations, visit
Newspapers Magazines
http://www.fifa.com/aboutfifa/documentlibrary/doclists/marketing.html
Soccer-Laduma Kick Off
Zizi Hollander Mark Murphy
FIFA Local Organising Committee (LOC)
(021) 425 1200 mmurphy@touchline.co.za
Emy Casaletti, marketing manager: (011) 567 2010
zizi@soccerladuma.co.za (021) 408 1258
or Jermain Craig, media manager: 083 2010 121
www.soccerladuma.co.za www.kickoff.com
FIFA licences, sub-licences, merchandising, and marketing/distribution:
Soccer Week www.soccerweek.mobi Amakhosi
Global Brands Group www.globalbrandsgroup.com.
Retailers/ buyers as well as companies wanting to enquire about FIFA http://www.kaizerchiefs.com
Sowetan Soccer magazine – quarterly
distribution rights, contact Neil Nottingham
www.hsm.co.za/sowetan-soccer.html SoccerLife
(neil.nottingham@globalbrandsgroup.com)
Enquiries about trade marketing and merchandising of the FIFA brand Taryn Gill
should contact Katie Black (Katie.black@globalbrandsgroup.com). (011) 280 5154
gillt@avusa.co.za
South African office: Darryl Kroll
Mobile www.soccerlife.co.za
Paul Zacks Retail sales & merchandising
Live Mobile
General manager manager
http://www.livemobile.co.za/ Touchline Media
(011) 537 4640 (011) 537 4640
www.touchline.co.za
PA Sports
Edward Lindsay-Bowman
http://www.pa-sport.co.za/divisions/za/en/
Licensing sales manager
(011) 537 4640 Outdoor 35
TEAMTalk Media OHMSA
http://www.teamtalkmedia.co.za/mobile.html http://www.ohmsa.co.za/
TV
SABC
Peter Kwele, 2010 general manager
e.tv: www.etv.co.za
SuperSport: SuperSport 3 and 4 are dedicated
channels.
www.supersport.co.za/football
Radio
The digital age has resulted in broadcasting on-air, online and Online Nielsen Report 2009 second quarter
mobile through cellphones. The potential of converging online and www. opa.org.za
radio is vital to the marketing mix. It’s interesting to see how this
Publisher average unique browser average page impression
mix works in reality. Take OFM, for instance, which targets 25–49
Beeld 382 445 11 010 139
year olds in LSM 7-10 across central SA. Its RAMS figures for
Die Burger 192 915 3 806 373
October 2009 showed 502 000 listeners in the past seven days. “For
the same period as the RAMS our website had 1.3 million page Rapport 111 516 1 450 477
views with an average time of six minutes and 30 seconds spent on Volksblad 54 213 579 846
the site,” says Zunckel. RSG 53 987 882 404
For marketers and media planners, regional radio stations which
are part of the same group, such as Jacaranda, ECR, OFM, Algoa
and Heart, allow for easy targeting of both English and Afrikaans audiences through the use of common campaigns. “The Sports
Cage concept, for example, uses common content and sponsorship
across the five stations for audience reach and offers the client the
value of national advertising,” says Zunckel.
40
Red: subscriptions and single copy sales
Blue: total paid
Green: total circulation
Figures in brackets refer to the total circulation for the corresponding previous period.
before printing – checking that documents are laid out the way they
should be before printing, including reducing the font size without
detracting from the quality of the presentation; working more
collaboratively online when reviewing documents; deciding on the best
way to deliver a document; using both sides of the paper when
printing; and using recycled materials where possible.
In the end, the best way to reduce waste associated with printing is
to avoid unnecessary prints in the first place. In the real world, though,
100 percent efficiency is always a challenge, which is where recycling
comes into play. Reusing unwanted paper instead of throwing it away
can make the world of difference. Instead of throwing away old
efficiency of their printing environments, save money and reduce the
non-confidential documents, why not shred them and reuse as
overall environmental impact. But why would a company like HP
packing material? Recycling isn’t just a matter of installing recycling
encourage companies to print less? The answer is simple: HP is
bins, although this is a good start. Companies should also encourage
committed to reducing the impact its products have on the environment
a culture where recycling is part of doing business.
and wants people to achieve more with their printing. For businesses,
Last but not least, it’s considered good business practice for
that means streamlining productivity and creating greater value
through printing – not consuming resources and generating waste. companies to encourage staff to turn off desktop printers when leaving
But, let’s make one thing very clear: paper isn’t the only contributor at the end of the day, and ensure that equipment not used on a daily
to waste. Printers use energy in varying degrees, even when left in basis is switched off rather than left on stand-by. In light of this, it may
standby. Ink and toner are often wasted in poorly designed printing be better business practice to adopt a centralised strategy of using
systems, and inferior quality cartridges print fewer pages and consume departmental printers and copiers.
more resources. Poorly designed cartridges and printers can be In many instances, however, a balanced deployment strategy works
difficult to recycle, while inefficient paper, ink and energy consumption best by using multifunction devices (MFDs) and single-function devices
is not only bad for the planet, but bad for business too. where appropriate. This approach can improve printing efficiency,
It goes without saying that people will continue to print documents, performance and cost, while dramatically increasing device utilisation
even when they know it’s better to simply review them electronically. It and return on investment. Employee productivity could also be
seems we will never fall out of love with paper. However, there are enhanced by moving advanced functionality closer to users, helping
many ways businesses can reduce their reliance on paper by thinking them achieve more with less.
of gay lesbian, men, women, bisexuals and medium, not only in securing privacy and
transsexuals, and is commonly referred to as anonymity, but also because it brings together
the LGBT market. It is independent, both people of similar mindsets who might
financially and practically. According to otherwise be geographically scattered and
strategic planning and research specialist Original socially isolated
Insight Learning, the pink market is an Businesses that sponsor or participate in gay
extremely social one. Activities are nothing community events enjoy a strong level of
out of the ordinary, ranging from clubbing and loyalty among gay consumers
shopping to gym, movies and dinner parties. Gay people are brand loyal, support
When the pink market goes shopping, they businesses that are ‘gay friendly’ and are
spend big money, and fashion is a top priority. responsive to advertising that acknowledges
Gay and lesbian couples have discretionary their preferences
income above the national average. Plus, these The pink market operates within a network
are households earning a double income, with of similar minded people where product and
few or no children and a tendency to prefer service experiences are communicated to
42 brands and labels. These are therefore house- friends and partners. Therefore businesses
holds with very high disposable incomes that need to take note that word of mouth is an
could be used for travelling, shopping and extremely credible marketing tool in the gay
other luxuries. and lesbian community.
The pink market spends the majority of Create a desire among your customers (pink
its income on products relating to travel, or straight) to make repeat purchases by
financial services, motor vehicles, fashion and focusing on these aspects: the delivery of
entertainment. The majority of this market professional service to customers; the speedy
(65 per cent) resides in the LSM 8-10 category; handling and resolving of enquiries and
over 80 per cent aged over 25 own their own complaints; the creation of an aesthetic
homes and over 15 per cent own a second home. environment within which a service is
In addition, over 70 per cent take more than delivered to the customer (this aspect includes
five power breaks in upmarket settings; over the appearance of employees); and the
25 per cent are self-employed entrepreneurs rewarding of loyal customers through
and over 30 per cent have a tertiary education. structured loyalty programmes
Since 2001, the pink market in SA has become Communicate to the pink market via media
more aware of whether businesses that they that they identify with such as:
buy from have instituted non-discrimination
and domestic partner policies. Magazines
The lesbian component of the pink market Wrapped magazine
in SA earns (as a whole) more than gay men, Mambaonline.com
heterosexual men as well as heterosexual Mambagirl.com
women, but this market is mostly overlooked Pink Pages
by marketers. Exit newspaper
Marketing tips to secure the interest of the The Pink Tongue newspaper
pink market
Ensure that your product or brand is Radio
Dr. Mornay Roberts-Lombard something the pink market wants to be Bravo Brava radio 2000
senior lecturer, department of associated with
Marketing Management, University of High-quality service is important to secure The pink market is very social; gays are out
Johannesburg customer loyalty and about more often and having more fun than
(011) 559 3031 The delivery of quality products is their straight counterparts. This is something
mornayrl@uj.ac.za non-negotiable, and something they are marketers need to take cognisance of more
willing to pay for pertinently.
Christmas in June
o what’s top of mind right now? Relief expectations of our guests. Have we
Be warned!
udge Mervyn King recently gave details on the implications King makes a comparison of how Nike and Coca-Cola have